India Pushes For Relief On MSME-Linked Steel Exports Ahead Of UK Tariff Move

New Delhi, Jun 11 (KNN) India is seeking product-specific exemptions from the United Kingdom's upcoming steel safeguard regime, particularly for MSME-linked steel products, as both countries work towards implementing their bilateral free trade agreement (FTA), according to sources.

UK Steel Safeguard Regime Triggers Trade Concerns 

The UK is set to introduce a new steel trade measure from July 1, 2026, under which tariff-free import quotas will be reduced by 60 percent and a 50 percent duty will be imposed on steel shipments exceeding the revised quota limits.

The issue has emerged as a key hurdle in the operationalisation of the India-UK trade agreement signed in July 2025, with discussions continuing between officials from both countries to find a resolution, reported Money Control.

India Seeks Exemptions For Key Steel Product Categories 

India is pressing for carve-outs for steel products where exporters have significant exposure to the UK market. These include stainless steel wire rods, gas pipes, other welded pipes, hot-rolled steel sheets and strips, stainless steel bars and light sections, and merchant bars.

Government officials noted that India is seeking relief across as many as 88 steel tariff lines that could be affected by the UK's new safeguard framework.

MSME Exporters At Risk From Tariff Changes 

Industry representatives have argued that established export flows should be protected and are advocating either exemptions or dedicated quota allocations based on India's average export volumes over the past three years.

The concern is particularly significant for MSMEs, as at least two of the identified product categories have substantial participation from small and medium-sized exporters.

Rising Steel Exports Highlight Market Importance 

Government data shows that India's iron and steel exports to the UK rose to USD 566.69 million in FY26 from USD 526.96 million in FY25 and USD 383.82 million in FY24, highlighting the growing importance of the British market for Indian steel producers.

Industry stakeholders believe that securing product-specific relief before the safeguard regime takes effect will be critical to preserving market access and ensuring that the benefits of the India-UK FTA are not diluted for domestic exporters, particularly MSMEs.

(KNN Bureau)